One of the pairs that have been trading in between consistent support and resistance levels in the last weeks is the AUDUSD:
The AUDUSD just triggered a bearish market condition, so as long as the Aussie keeps trading below 0.8968 I will be looking for short trade opportunities. And of course, all long opportunities will be ignored.
Hope you all had a merry Christmas with your loved ones.
After taking a few days off (and hope you did too) I’m back to trade the FX market. I see that the market didn’t move that much, just a few pips here and there.
I see most pairs are trading near long term important levels therefore we need to wait for the market to confirm either a breakout or rejection of such levels. However, a few of them are trading in a clear market condition, one of them is the Australian Dollar.
The AUDUSD is trading in a bullish market condition, it broke the short term resistance level during in the Asian opening, setting it up for a bullish market condition:
My Trading Plan:
As long as the AUDUSD trades above 0.8829 I will look for long trade opportunities. My next LT resistance level is at 0.9100
On Tuesday we talked about the AUDUSD, we mentioned that it was trading in a short term range in between 0.9363 and 0.9234 therefore the Australian dollar needed to break that range before starting to look for trade opportunities.
Well, its out of that range now, it broke through the bottom of the range and it is now in a bearish market condition, here is the chart:
Since we are in a bearish market condition, we should only look for short trade opportunities.
Here is my trading plan:
As long as the Australian dollar continues to trade below 0.9234 I will be looking for short opportunities. My next long term support level is at 0.8950
Yesterday we wrote an article about the possible bullish market condition of the AUDUSD, and it was bullish, but it only last for a few hours. The AUDUSD came back to the neutral territory and stayed there for a while.
Things have changed today though, earlier this morning we saw the AUDUSD break the short term support level which puts the Australian dollar in a bearish market condition.
I don’t like it when we see any pair changing from bullish to bearish and vice versa, but if we take a look at the daily chart its clear that the market was rejected from the resistance level (we had a false breakout last Wednesday).
Also take in consideration the AUDUSD is trading below every important level in the short term charts, so everything is in line now.
Anyway, here is my trading plan:
As long as the market keeps trading below 0.9259 I will be looking for short opportunities. The next LT support level is at 0.9993
It’s been difficult to find trading opportunities this week (other than in the USDCAD), but apparently the end of the week has something for us. The AUDUSD broke an important long term resistance level:
This puts the AUDUSD in a bullish market condition, therefore only long positions are in play.
Here is my trading plan:
As long as the AUDUSD trades above 0.9335 I will be looking for long trading opportunities. All TP orders will be set below the next LT resistance level 0.9485
This Monday has been difficult for most currency pairs because of the wild moves we saw in the EUR pairs, last Friday movements in the GBP pairs… Probably the best thing to do today is to look for the clearest trading opportunities, like the AUDUSD
Last Thursday we talked about the AUDUSD, we mentioned the market was trading in a short term range and it needed to break either side of the range to start looking for a trading opportunity. Well, just broke the bottom of the range:
This puts the Aussie-dollar in a bearish market condition, looking for short trading opportunities.
My Trading Plan:
As long as the market keeps trading below 0.9193, I will be looking for short trading opportunities. All TP orders will bet set around 0.9022.
The AUDUSD is trading at an important long term resistance level (blue line):
I would like to see the AUDUSD out of the short term range before think about opening a position here.
Here is my Trading Plan
If the Australian Dollar breaks the top of the short term range, I will be looking for long trading opportunities. All take profit orders will be placed below the next LT resistance level around 0.9638.
If the Australian dollar breaks the bottom of the range, I will be looking for short trading opportunities. All take profit orders will be placed above the next LT support level around 0.9022.
If the market keeps trading in between the ST range, I will do nothing.